step #1: the base and best sequence to teach phonics

when taught in a sequence, most children pick up spellings and reading very well. you may start teaching alphabet recognition to a child as small as 2 years old. once a child recognizes alphabets, you may teach him corresponding words using pictures. soon the child learns that there are many words that start with the same letter. (B for bat, ball, C for cat, car etc). no stress should be put on individual sounds at this stage. this is the base to learning phonetics later on. once the base is established, you may start teaching phonetics sequentially, say, by the end of Nursery. please note that there is no fixed age, some children learn early and some learn late. a little bit of up and down in the age doesnt matter in the long run. so dont feel the pressure of teaching, feeling that clock is ticking.

the best sequence to teach phonetics to a child is:

1. single consonant sound
2. single vowel sound (the common sounds only)
3. CVC words
4. blends of two consonants
5. simple units - 1
6. sight words
7. simple units-2
8. clusters
9. compound words
10. homophones
11. homonyms 
12. short and long sounds
13. 2-3 syllable words
14. silent letters
15. complex units
16. 4-6 syllable words

step #2: sound --letter

when you start teaching sound letter association, there are certain things you need to keep in mind:

1. teach consonant sounds first
2. teach bothways- from letter to sound and from sound to letter (b is ब and ब is b)
3. teach only the most common sounds of vowels (eg, a of cat and not of ball)
4. teach only the hard sounds of the consonants (c of cat and not of city, g of gun and not of gem)
5. use multi-sensory methods to teach, instead of relying only on paper-pencil method. use sandpaper tracing, stencil tracing, sand tracing, letter making with noodles, dough, clay etc, while the child is learning the sound of that letter.
6. use multiple words for a letter, all with the same sound.
7. use words that the child is more familiar with, and not the less familiar ones(eg, balloon and not baboon, cat and not cactus)

step #3: the CVC words

CVC words are very good way to teach word reading and spellings. few points to keep in mind while teaching CVC words are:

1. when you are teaching 3 letter CVC words, start with the a-words, then o-words, then i-words, then e-words and then u-words.
2. start with the '-at' words, as most of the words falling in this category are well known by children already (cat, bat, mat, rat, sat, hat, fat, pat)
3. go by "end sounds" first and then add the "first sound". for example, when teaching 'bat', say a-t at, b-a-t bat and not b-a ba, b-a-t bat, because the sound of b-a varies with words(as in ball- औ  , bar -आ ), while a-t remains 'at' mostly(as in cat, fat, hat).
4. then go for other a-CVC words. like -an, -am, -ag, -ad, -ab, -ap, -ax units . do not use the -ar, -aw, -ay, -as units as the sound of 'a' is different in these.teach these latter sounds later
5.  then go for o-CVC words (starting with the t-ending ones firs, like cot, got, hot, and then moving on to cob, god, mop, for, etc)
6. then go for i-CVC words like hit, fit, bib, hid, lid, pin, etc. do not teach the r-ending ones like sir, as the sound of 'i' in sir is अ and not इ 
7. then go for  e-CVC words, like  gem, hen, den, pet, bed, web, beg, etc and not the ones ending with r and w, like her, dew, mew, as the sounds of 'e' in the latter words are different (अ and इउ )than the one we are teaching in the beginning days (ए).
8. then go for u-CVC words, like but, cut, hut, nut, rut, gut, and not put, as put has another sound of 'u' (उ)..you may teach this exception-word later